Exploring Medtech Tailwinds: Insights from the Avio Medtech & Forj Medical CEO Roundtable

At Forj Medical’s Energy Park Drive campus, the third Avio Medtech & Forj Medical CEO Roundtable recently convened a select group of startup leaders and executives for an open dialogue on the current tailwinds strengthening the medtech growth environment.

The conversation centered on three themes shaping today’s innovation and investment landscape:

1. Opportunities emerging from heightened Medicare Advantage (MA) plan scrutiny

2. Strategic partnering trends among hospitals and Integrated Delivery Networks (IDNs)

3. The cautiously improving financing environment for medtech ventures

1. Medicare Advantage: A Developing Tailwind

As CMS intensifies its review of how MA plans use risk-adjusted payments, device innovators see new openings to demonstrate measurable impact on patient outcomes. One participant described it as a “sea change—CMS is seeing the value of prevention over cure.” With MA plans under scrutiny to prove that increased payments for sicker patients are translating into improved care, technologies focused on prevention, early detection, and chronic disease management are gaining strategic attention.

Key takeaways:

• Payers are pursuing solutions that clearly demonstrate clinical impact and long-term sustainability, especially in chronic care.

• “Shared survival economics”—keeping patients healthier and members longer—is emerging as a stronger motivator for payers than cost savings alone.

• Vertically integrated “pay-viders” are becoming more receptive to collaborations that improve population health metrics.

Roundtable participants grouped medtech solutions into three strategic impact categories:

1. Population health tools – focus on cost savings, efficiency, and measurable clinical outcomes.

2. Disease management technologies – drive new or shifted revenue streams (“Who really makes money with your success?”).

3. Cure-oriented innovations – aim to fundamentally change or eliminate a disease state.

While navigating reimbursement remains difficult, the current pressures on MA plans offer an emerging path forward. The consensus: success hinges not only on understanding reimbursement mechanics, but on understanding payer business models.

2. Partnering with Hospitals and IDNs

Integrated Delivery Networks (IDNs) are showing increased appetite for collaboration through pilot programs and co-development partnerships. Unlike academic medical centers, which often pursue IP rights or royalties, IDNs are more interested in clinical validation, brand equity, and outcomes data.

Highlights:

• IDNs prioritize revenue growth, patient outcomes, and reputation over intellectual property rights.

• Some networks now back innovations that originated from their own physicians, reinforcing their image as catalysts for medical innovation.

• Partnerships thrive when centered on clinical engagement, data sharing, and joint publications—building credibility without complicating ownership structures.

Startup leaders emphasized the strategic importance of these partnerships. As one CEO noted, “Customers are much more valuable to your business than investors.” The message was clear: durable commercial partnerships often drive enterprise value more effectively than additional equity rounds.

Targeting hospitals and IDNs as authentic collaborators, rather than mere buyers, may prove one of the most rewarding strategies for 2026.

3. Financing and Investment: Signs of Upward Movement

The medtech financing environment remains competitive, but indicators are trending positive. Venture liquidity from biotech exits and renewed attention from strategic investors are beginning to reenergize the sector.

Observations:

• Successful biotech exits have replenished venture capital funds, creating liquidity that may flow into medtech.

• Strategic investors are re-engaging earlier in the development cycle, eager to identify new growth pipelines.

• IPO and acquisition activity in medtech is modestly increasing, signaling mutual confidence between innovators and investors.

The tone, however, remained pragmatic. As one participant summarized, “A trendline in the right direction is just that—a trend.” Still, for startups demonstrating measurable impact, efficient capital use, and strong clinical validation, the landscape looks more promising than it has in years.

Looking Forward

Across all themes, the roundtable underscored a central insight: alignment drives advantage. Whether with payers, providers, or investors, medtech innovators who understand how their technologies fit within broader ecosystems—business models, care pathways, and market incentives—are best positioned to thrive in 2026’s evolving environment.

Thank you to Forj Medical and each executive who contributed to this lively, forward-thinking discussion. Stay tuned for highlights from our next CEO Roundtable as we continue fostering collaboration and thought leadership across the medtech startup community.

If you are a startup medical device CEO or founder and would like to request an invitation to our next roundtable, please contact us.